The troubles of star company 188bet login have never stopped.

June 2019，188bet login announces full implementation in China 2.0 mode。Only half a year has passed，Following 1.After 0 mode failure，2.0 mode is also in trouble now。Thousands of owners across the country are seeking 188bet login to terminate their contracts and pay the balance of the agreement，They also need to face a small and medium-sized hotel market disrupted by 188bet login’s massive subsidies。

188bet login does not own its own hotels，Instead, it integrates independent hotels through the franchise model，Thus achieving its own rapid development。

In the previous 1.0 In "light franchise" mode，Independent hotels can use the 188bet login brand，188bet login provides unified decoration subsidies to hotel owners，And packaged traffic including OTA and 188bet login，Charge 3%-8% franchise commission。And 2.0 mode emphasizes “strong control” over owners，Hotel owners uniformly use 188bet login’s PMS (hotel property management) system，At the same time, 188bet login provides owners with a guaranteed income，Both parties share the income exceeding the guaranteed income。

188bet login was founded in India in 2013 by 18-year-old Ritesh Agarwal，Enter China in 2017。188bet login claims to the outside world，It only took 2 years，It already has more than 10,000 hotels in China、More than 500,000 rooms，Renewal rate reaches 97%，And become the largest single-brand hotel in China。

In addition to entering the Chinese market，This company started in India has also expanded its global presence。As of now，188bet login’s total financing has exceeded US.7 billion。Its style of play is the favorite style of play of its investor SoftBank founder Masayoshi Son: entering a market and expanding rapidly，And use huge amounts of capital to build scale and gain market monopoly。

Starting from Series B financing，Masayoshi Son appears behind 188bet login。According to "Finance" report，Son Zhengyi spends 3 days a month with Lee Tae Hee，“SoftBank regards 188bet login as something it must win。”

However，In the two years since entering China，About the frequent turnover of 188bet login’s star executive “puppet” team、Continuous layoffs、There are many “zombie rooms”、The news that owners are seeking to terminate their contracts has never stopped。In China，188bet login only values ​​quantity、Rapid expansion without emphasis on quality hides the risk of collapse。

Failed to go public at shared office space company WeWork、After the valuation plummeted，Sun Zhengyi is facing doubts from all over the world。188bet login has exposed major problems in the Chinese market at this time，Is it another bubble created by capital?？

Owners besiege 188bet login

Recent period，188bet login employees and hotel owners contracted by 188bet login disclosed to Ran Finance one after another，188bet login offices across China are constantly under siege from contract owners。They are organized voluntarily by private citizens，Gathering together through the Internet，And organize offline groups to protect rights。Incomplete statistics according to Ran Finance，The number of people has reached 700 or 800。

Video screenshots of 188bet login defending their rights offline / Rancaijing

The problems encountered by the owners are almost the same as their demands: requiring 188bet login to pay for self-signing 2.0 mode contract since，The guaranteed balance that failed to be paid as scheduled。

Previously，188bet login has not discussed with the owner，Modified the minimum guarantee amount when initially signing the contract with the owners，And notify the contract owner of the change decision by email。188bet login requires owners to reply “disagree” within 24 hours of receiving the email，Otherwise, it will be deemed that the owner agrees to change the contract。

188bet login sent an email to hotel owners to modify the minimum guarantee amount / Ran Finance

Feng Lin, a hotel owner from Yangjiang, Guangdong, told Rancaijing，He started to contact 188bet login staff in June，The conditions offered by the staff at that time were a guaranteed amount of 530,000/year。Yangjiang is a tourist city，The owner said，His hotel usually has a turnover of more than 700,000 yuan a year，Net profit is three to four hundred thousand。More than 10 days after initial contact，188bet login staff called Feng Lin again，Said to change the guaranteed amount to 590,000/year，But also requires the right to control prices。

"What I was thinking was，We only need to manage the cleaning inside the hotel、Waiter, etc.，Leave customer source issues to 188bet login，Let’s save trouble”，Feng Lin said，“In addition, because we are a tourist city，There are off-season and peak season，Monthly revenue in off-season is only 20,000-30,000 yuan，If handed over to 188bet login，Even if you lose a little in peak season，But if we can tie up the off-season，Also a good deal。”

July 25，Feng Lin’s hotel is online on 188bet login。Contract provisions，After going online, 188bet login will first pay 35% of the monthly guarantee amount to the hotel。August，188bet login paid 7 to Feng Lin’s hotel、35% of the guaranteed amount for two months in August，About 30,000 yuan (7、The guaranteed amount in August is around 60,000)，But no further payments were made。

Due to 188bet login 2.Mode 0 implements “strong control” on owners，The hotel needs to use 188bet login’s PMS system，All hotel revenue is collected by 188bet login。This means，If 188bet login does not pay on time，The hotel will be in a situation of difficulty in cash flow。

On the other hand，After 188bet login took away the hotel’s price control rights，In Meituan、The prices listed on OTA platforms such as Ctrip are determined by 188bet login，"When it goes online on July 25th，188bet login’s pricing is 35，Plus coupons and various subsidies，General room price is more than ten yuan，You can stay at as low as 0 yuan。”In Yangjiang，The cost of a room is at least 70 yuan。

September，Because 188bet login has been unable to pay the guaranteed payment on time，Feng Lin contacted 188bet login to request to terminate the contract。The National Day Golden Week is about to begin，Feng Lin doesn’t want to continue losing money。Staff at 188bet login "already changed 3 dials"、In the case of “procrastination again and again”，October 8，188bet login directly removed Feng Lin’s hotel from the shelves，But still not paid the remaining amount。

The situation of owners across the country and Feng Lin are similar。Some owners even said，In your own city，Within no more than one kilometer，There are more than a dozen 188bet login hotels，“188bet login never considers the issue of saturation，We are not a tourist attraction，Why are there so many floating populations？”

The Dilemma of the Sinking Market

188bet login is launching 2.In 0 mode，The EGM (Emerging Growth Markets) division was established around the same time，Xu Yifeng, who was born in Coca-Cola Company, is the general manager。2.0 mode is mainly targeted at tier 1-4 cities，EGM targets county-level cities and county towns，Continue to use 1.0’s “light franchise” mode，Renamed "Model X" mode in August this year。

188bet login’s Model X model for the sinking market / Ran Finance

For EGM，Xu Yifeng previously said: "There are currently more than 1,800 county-level administrative regions in China，The existing 188bet login market is around 250,000，Can generate an average daily revenue of approximately RMB 500 million，EGM will be more flexible in the future、Lighter mode operation，Increase the revenue of independent hotels with transformation methods and management methods that are more suitable for the county-level 188bet login market，Truly meet the daily leisure travel needs of the vast majority of Chinese people。At the same time，In terms of organizational structure, EGM will highlight simplicity and efficiency，Establish a sustainable development profit model。”

Li Hang, a former employee from the EGM department told Rancaijing，EGM put 1.Development in 0 mode、Operation、Project (responsible for signing contracts respectively、Operation management and decoration) three positions combined into one position，called CLC (City Partner)，Basic salary 2,500 yuan。In his opinion，There are many hidden dangers in the team: "In my team，Someone has opened a bakery before、Sand seller，Fertilizer factory employees, etc.，When the company’s training cannot keep up，Looking at it from a professional perspective，These people can’t do well in the 188bet login market。”

Li Hang told Rancaijing，188bet login’s EGM team，In order to increase the number of rooms，Monthly KPI indicators are set very high，“It can’t be completed at all”，Some cities even “signed in all nursing homes”。

Before this，About 188bet login 1.There are endless rumors of 0 mode data fraud。at 2.In 0 mode，This practice has not been improved。In Li Hang’s opinion，The higher-ups should know about this，There are even leaders who “knowingly tell you to fake it”。“The leader will not speak in the company，I will call you alone，Tell me how to operate this store，For example, some stores have already posted the 188bet login brand once，You can post it again，Even one store can be listed three times in a row。"Li Hang said。

Another serious problem is the power struggle and nepotism within the company。According to Li Hang，Because Chief Revenue Officers Zhu Lei and Xu Yifeng are responsible for 2.0 Mode and EGM Market，So the two teams will compete and compete with each other。The EGM team that Xu Yifeng is responsible for，Many people and Xu Yifeng are from Coca-Cola，“I don’t know about 188bet login professional things，And it has the social habits of the FMCG industry，Suppress other non-Coca-Cola professionals”，To achieve digital goals，"Continuity will not be considered、Long term，It’s more about completing the performance”。

Front is working hard to expand the 188bet login、Rear operations cannot keep up，Making Li Hang less and less motivated to work in the later period，"The battle ahead，Fire behind，I don’t know if I should put out the fire，It’s still time to fight。“

The consensus of many practitioners interviewed by Ran Finance is，In the sinking market，More customers come from individual travelers，Not online channels。Can hotels in sinking markets really be integrated through 188bet login’s current methods，Still a question mark。

Another mistake by Son?

“It’s hard to take shortcuts when it comes to hotels，Capital can make it faster，But you have to bring value to both owners and customers。" said Zhang Yu, former dean of 188bet login training academy，“In the market of small and medium-sized hotels，What 188bet login did was just lower the price，Does not bring value，And lowering prices is the easiest thing to do”。

Zhang Yu thinks，Although 188bet login’s senior management team is very smart，But the final consequences of 188bet login’s current practices are，The last hotels signed by 188bet login are all hotels with poor quality and low operating efficiency，“The stores I got are all bad stores，In the end, you will turn yourself into a garbage company。”

188bet login’s entry has also allowed more people to see the market possibilities of independent hotels。After leaving 188bet login，Zhang Yu decided to enter the independent hotel market，Start your own business。

The Chinese market is extremely important to 188bet login。According to 188bet login official data，There are about 1 in the world.600 million small and medium-sized independent hotel rooms，There are about 40 million in China，More than 90% of them are potential target markets for 188bet login hotels。September 2018，188bet login global financing of US billion，Spent 0 million of it in China。However，China’s senior management team is always controlled by Indian management，It is difficult to have the final decision-making power。

The Indian superiors of 188bet login Chinese CXOs，Source / 188bet login China DingTalk

In fact，188bet login’s crisis doesn’t just happen in China。August 2019，In 188bet login’s home market India，Small hotel owners organized protests against 188bet login in several Indian cities。According to Reuters，Amitabh Mohapatra, the head of such an organization in northern India said，More than 300 hotels have withdrawn from 188bet login’s Indian network this year。

According to American media Skift report，Several hotel owners in the United States are also complaining that 188bet login’s management system is not functioning properly，Leading to overbooking and poor customer service，And the dues have not been paid at the same time。

Li Taixi once said，188bet login will develop into the world’s largest hotel chain group in 2023。188bet login executives once told the media，188bet login’s first goal is to be large enough；The second is to greatly increase the occupancy rate or revenue of all hotels；The third is to become the most profitable hotel management company；The fourth is ecological value-not just hotels，There must be something else。

September 10, 2019，188bet login announced the opening of its first coffee store "Fenran Coffee" in Xi'an, China。In India，188bet login also launched the “new real estate” business，Including shared long-term rental apartments and shared office spaces。According to "Finance" report，In Lee Tae Hee’s definition，188bet login is not an Internet company，But an entity operating company，Should not be compared to Uber，It should be with KFC、Starbucks Compare Construction and Investment Properties、Create revenue。

This is an imaginative story。However, this imaginative story and 188bet login’s actual performance，Reminiscent of WeWork, another sharing economy company invested by Masayoshi Son。

The shared office space WeWork relies on capital to continue its rapid expansion，Highest valuation reaches billion，However, its profitability is very worrying，Loss of billion per year。final，With the failure of WeWork’s IPO，Its valuation plummeted，Down to .8 billion。WeWork has also been labeled a "bubble"。

Invested in Uber in SoftBank、After WeWork and other companies，The story of the sharing economy is being questioned。And due to Son’s major decision-making mistakes，Japan’s SoftBank Group suffered its first single-quarter operating loss in 14 years 188bet login second fiscal quarter of this year。Sun Zhengyi even held a 2-hour meeting，“Public apology、Self-reflection”。Many entrepreneurs said，SoftBank’s investment has now become a negative brand。

And now，188bet login encountered another setback in China。If you only have scale, you cannot provide sustained value to cooperative owners，188bet login will eventually collapse because of the loss of service foundation。Until then，188bet login may become another mistake of Masayoshi Son。

*At the request of the interviewees, Feng Lin and Li Hang are pseudonyms 188bet login article.

*Source of this article: WeChat public account “Rancaijing” (ID:rancaijing)，Author: Kong Mingming，Original title: "Data fraud、Encirclement and suppression by owners，188bet login can no longer run wildly in China？》.